The Czech investment market gathered momentum in the first half with almost EUR 800 mln of real estate transactions being finalised, according to Colliers' mid-year country report released on Wednesday. The volume represents a nearly 50% increase on the volume of deals closed in the whole of 2010.
The Czech investment market gathered momentum in the first half with almost EUR 800 mln of real estate transactions being finalised, according to Colliers' mid-year country report released on Wednesday. The volume represents a nearly 50% increase on the volume of deals closed in the whole of 2010.
Total office stock in Prague is now slightly above 2.7 milion m2 with Grade A space accounting for 68% of the total stock. Currently some 191,000 m2 of office space is under construction with the majority being built in Prague 8 (37%) and Prague 4 (32%). Almost 110,000 m2 is scheduled to be completed by the end of 2011, of which 45% has been pre-leased.
In regards to demand, gross take-up reached 173,000 m2 during the first six months of 2011, which is a 78% improvement on H1 2010 and a 47% increase on H2 2010. Total take-up in H1 2011 was driven mainly by companies from the Banking/Insurance/Investment sector (28%) followed by the IT sector (16%) and Professional services (14%).
Office vacancy has been steadily falling over the past four quarters and by end H1 2011 stood at 11.86% down from almost 14% at the same point last year. Across Prague there is 322,000 m2 of vacant office space available for lease.
'Landlords and developers continue to provide incentives to both existing and potential tenants,' said Omar Sattar, managing director of Colliers International for the Czech Republic. 'Net office take-up will continue to make up the largest portion of total office transactions for the rest of 2011, which is a positive trend; with lease renewals and relocations playing an important yet diminished role.'
